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Income Taxes
3 Months Ended
Mar. 25, 2016
Income Tax Disclosure [Abstract]  
Income Taxes

11.  Income Taxes

The Company and its subsidiaries file income tax returns in the U.S. Federal jurisdiction, which is the Company’s primary tax jurisdiction, and various state and foreign jurisdictions. As of March 25, 2016, the statutes of limitations for the Company’s U.S. Federal income tax returns for the years ended December 31, 2010 through 2014 were open. The U.S. Internal Revenue Service (IRS) commenced an audit of the Company’s U.S. Federal income tax return for 2012. The Company cannot predict the outcome of the audit at this time.

The effective income tax rate for the quarterly period ended March 25, 2016 decreased to 22.3% from 30.5% for the quarterly period ended March 27, 2015. The decrease was primarily due to: (1) the early adoption of a new accounting standard related to tax benefits from employee stock based compensation awards, which resulted in a $10 million reduction to income tax expense (see Note 3) and (2) a benefit from the reinstatement of the Federal Research and Experimentation (R&E) tax credit. As of March 25, 2016, the Company anticipates that unrecognized tax benefits will decrease by approximately $6 million over the next 12 months due to the potential resolution of unrecognized tax benefits involving several jurisdictions and tax periods. The actual amount of the decrease over the next 12 months could vary significantly depending on the ultimate timing and nature of any settlements.

Current and non-current income taxes payable include accrued potential interest of $19 million ($11 million after income taxes) at March 25, 2016 and $18 million ($11 million after income taxes) at December 31, 2015, and potential penalties of $8 million at March 25, 2016 and $9 million at December 31, 2015.